How High Can the Euro Go?

The Fed's QE3 announcement helped send the euro on a tear, and this strategist thinks it still has room to run.

The past week was a big one for the euro, what with the after effects of the European Central Bank'sbond buying promise, the announcement of QE3, and the euro breaking above its 200-day moving average. The currency raced through the 1.3100 level, and Andrew Busch, global currency and public policy strategist at BMO Capital Markets, thinks it has more room to rise - but needs to be played carefully.

"This is just a major sugar high," he says. Once the euro broke through 1.2830, it started rocketing, especially once the ECB "took away the death threat of the euro," he told CNBC's Melissa Lee.

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Busch does think the euro could still push higher - but it's a trade for risk takers. Even "for those of you who are just insane and have to jump in to buy euros at these levels," Busch recommends stepping aside and waiting for a pullback. He suggests entering at 1.3025, setting a stop 1.2925 and a target at 1.3325. "If you think that will run away from you," Busch recommends structuring your trade with a one-to-three ratio, setting your stop 100 pips lower than your entry and your target 300 pips above that.

Abigail Doolittle, the founder of Peak Theories Research, likes the trade, but she's edgy. "this thing could still run but you want to be careful," she says. So Doolittle thinks an even tighter stop could work, perhaps at 1.2974.